H.R. 1037House116th Congress (2019-2021)Passed House

Banking Transparency for Sanctioned Persons Act of 2019

AI-Generated Summary

Updated April 14, 2026 at 1:36 AM UTC

The Banking Transparency for Sanctioned Persons Act of 2019 requires the Treasury Secretary to publish a report every 180 days detailing any licenses that let U.S. or foreign banks provide services to state sponsors of terrorism and listing foreign banks that knowingly handled significant transactions for individuals on the Treasury’s sanctions list. The report is sent to relevant House and Senate committees and continues for seven years. The law also lets the Treasury waive reporting requirements if a foreign bank stops the prohibited activity or if a waiver is deemed important to U.S. national interest.

Key Provisions

Treasury must issue an unclassified report (with possible classified annex) every 180 days, including copies of recent licenses for services to state sponsors of terrorism and a list of foreign banks that knowingly processed significant transactions for sanctioned persons.
The report covers persons on the Specially Designated Nationals and Blocked Persons List who are owned or controlled by state sponsors of terrorism or designated under specific Russia‑Moldova, Global Magnitsky, or Executive Order 13818 authorities.
The Treasury Secretary may waive the reporting requirement for a foreign bank if it provides credible assurance it will stop the prohibited activity, or if a waiver is deemed important to U.S. national interest, with an explanation to Congress.
The reporting requirement expires seven years after the law’s enactment.

Legislative Activity

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8 earlier actions

SenateIntro Referral Latest Action

Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Banking, Housing, and Urban Affairs Committee

May 15, 2019

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HouseIntro Referral

Introduced in House

February 7, 2019

HouseIntro Referral

Referred to the House Committee on Financial Services.

Financial Services Committee

February 7, 2019

HouseFloor

Ms. Waters moved to suspend the rules and pass the bill.

May 14, 2019 • 5:35 PM

HouseFloor

Considered under suspension of the rules. (consideration: CR H3769-3770)

May 14, 2019 • 5:35 PM

HouseFloor

DEBATE - The House proceeded with forty minutes of debate on H.R. 1037.

May 14, 2019 • 5:35 PM

HouseFloor

Passed/agreed to in House: On motion to suspend the rules and pass the bill Agreed to by voice vote.(text: CR H3769)

May 14, 2019 • 5:46 PM

HouseFloor

On motion to suspend the rules and pass the bill Agreed to by voice vote. (text: CR H3769)

May 14, 2019 • 5:46 PM

HouseFloor

Motion to reconsider laid on the table Agreed to without objection.

May 14, 2019 • 5:46 PM

SenateIntro Referral

Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Banking, Housing, and Urban Affairs Committee

May 15, 2019

Floor Debate

4 members

What members said about H.R. 1037 on the floor

3 Republicans1 Democrat

Sen. Michael B. EnziR-WY · Jun 26, 2019

Mr. President, I wish submit to the Senate the budget scorekeeping report for June 2019. The report compares current-law levels of spending and revenues with the amounts the Senate agreed to in the Bipartisan Budget Act of 2018 BBAl8. This information is necessary for the Senate Budget Committee to determine whether budgetary points of order lie against pending legislation. The Republican staff of the Budget Committee and the Congressional Budget Office, CBO, prepared this report pursuant to section 308(b) of the Congressional Budget Act, CBA.

This is my fifth scorekeeping report this year. My last filing can be found in the Congressional Record for May 22, 2019. The information included in this report is current through June 24, 2019.

Since my last filing, Congress has cleared three pieces of legislation with significant budgetary effects. The first, the Additional Supplemental Appropriations for Disaster Relief Act, 2019, P.L. 116-20, provided $19.1 billion in emergency discretionary appropriations to address recent natural disasters. The second, the Blue Water Navy Vietnam Veterans Act of 2019, H.R. 299, increased compensation for certain veterans and modified veteran home loan programs. The final bill, the Taxpayer First Act, H.R. 3151, modified several rules that govern the organization of and operations at the Internal Revenue Service.

Budget Committee Republican staff prepared Tables A-C.

Table A gives the amount by which each Senate authorizing committee exceeds or is below its allocation for budget authority and outlays under the Fiscal Year 2019 enforceable levels filing required by BBA18. This information is used for enforcing committee allocations pursuant to section 302 of the CBA. For this reporting period, 9 of the 16 authorizing committees are not in compliance with their allocations. Over the current 10-year enforceable window, authorizing committees have increased outlays by a combined $3.6 billion. Of the bills clearing Congress this reporting period, H.R. 299 added to the Veterans' Affairs Committee's existing violations, including an increase in spending of $394 million over the 10-year window, while H.R. 3151 reduced spending scoreable to the Finance Committee by $201 million over the same time period.

Table B provides the amount by which the Senate Committee on Appropriations is below or exceeds the statutory spending limits. This information is used to determine points of order related to the spending caps found in sections 312 and 314 of the CBA. Appropriations for Fiscal Year 2019, displayed in this table, show that the Appropriations Committee is compliant with spending limits for the current fiscal year. Those limits for regular discretionary spending are $647 billion for accounts in the defense category and $597 billion for accounts in the nondefense category of spending.

The Fiscal Year 2018 budget resolution contained points of order limiting the use of changes in mandatory programs in appropriations bills, CHIMP. Table C, which tracks the CHIMP limit of $15 billion for Fiscal Year 2019, shows the Appropriations Committee has enacted $15 billion worth of full-year CHIMPs for this Fiscal Year.

In addition to the tables provided by Budget Committee Republican staff, I am submitting CBO tables, which I will use to enforce budget totals approved by Congress.

For Fiscal Year 2019, CBO estimates that current-law levels are $2.9 billion above and $3.3 billion below enforceable levels for budget authority and outlays, respectively. Revenues are $426 million below the level assumed in the budget resolution. These figures remain unchanged since the May Scorekeeping Report, as the appropriation provided in P.L. 116-20 was accompanied by a concurrent and equivalent increase in aggregate spending levels pursuant to section 314 of the CBA. This adjustment can be found in the Congressional Record for May 23, 2019. Further, Social Security revenues are at the levels assumed for Fiscal

Year 2019, while Social Security outlays are $4 million above assumed levels for the budget year.

CBO's report also provides information needed to enforce the Senate pay-as-you-go, PAYGO, rule. The PAYGO scorecard shows deficit increases in Fiscal Year 2019 of $1,957 million, $427 million revenue loss, $1,530 million outlay increase; over the Fiscal Year 2018-2023 period of $3,412 million, $907 million revenue loss, $2,505 million outlay increase; and over the Fiscal Year 2018-2028 period of $800 million, $798 million revenue loss, $2 million outlay increase. During this reporting period, H.R. 3151 had the effect of reducing deficits by $37 million over both the Fiscal Year 2018-2023 and Fiscal Year 2018-2028 periods, while H.R. 299 increased deficits by $76 million and $394 million over the same periods, respectively.

This submission also includes a table tracking the Senate's budget enforcement activity on the floor since the enforcement filing on May 7, 2018. Since my last report, no new budgetary points of order were raised. On May 23, 2019, however, a Senator made a preemptive motion to waive all applicable points of order against the supplemental appropriations bill that would become P.L. 116-20.

All years in the accompanying tables are fiscal years.

I ask unanimous consent that the accompanying tables be printed in the Record.

Sen. Michael B. EnziR-WY · Feb 27, 2019

Mr. President, I wish to submit to the Senate the budget scorekeeping report for February 2019. The report compares current-law levels of spending and revenues with the amounts the Senate agreed to in the Bipartisan Budget Act of 2018, BBA18. This information is necessary for the Senate Budget Committee to determine whether budgetary points of order lie against pending legislation. The Republican staff of the Budget Committee and the Congressional Budget Office, CBO, prepared this report pursuant to section 308(b) of the Congressional Budget Act, CBA.

This is my second scorekeeping report this year. My last filing can be found in the Congressional Record for January 10, 2019. The information included in this report is current through February 25, 2019.

Since my last filing, two bills with significant budgetary effects cleared Congress, the Medicaid Extenders Act of 2019, P.L. 116-3, and the Consolidated Appropriations Act, 2019, P.L. 116-6.

Budget Committee Republican staff prepared Tables 1-3.

Table 1 gives the amount by which each Senate authorizing committee exceeds or is below its allocation for budget authority and outlays under the most recently adopted budget resolution and the fiscal year 2019 enforceable levels filing. This information is used for enforcing committee allocations pursuant to section 302 of the CBA. Over the current 10-year enforceable window, authorizing committees have increased outlays by a combined $3.4 billion. For this reporting period, as in my last report, 8 of the 16 authorizing committees are not in compliance with their allocations. Two of these committees, Finance and Judiciary, further exacerbated their violations during this work period with the passage of Medicaid Extenders and the authorizing division, Division H, of the final 2019 appropriations bill, respectively. For the Finance Committee, P.L. 116-3 was estimated to increase budget authority over each enforceable period for its allocation, with the largest violation, $120 million, occurring in 2019. For the Judiciary Committee, Division H of P.L. 116-6, which included various immigration extenders, was estimated to increase budget authority and outlays by $30 million over the next 10 years.

Table 2 provides the amount by which the Senate Committee on Appropriations is below or exceeds the statutory spending limits. This information is used to determine points of order related to the spending caps found in sections 312 and 314 of the CBA. Appropriations for fiscal year 2019, displayed in this table, show that the Appropriations Committee is compliant with spending limits for fiscal year 2019. Those limits for regular discretionary spending are $647 billion for accounts in the defense category and $597 billion for accounts in the nondefense category of spending.

The fiscal year 2018 budget resolution contained points of order limiting the use of changes in mandatory programs in appropriations bills, CHIMPs. Table 3, which tracks the CHIMP limit of $15 billion for fiscal year 2019, shows the Appropriations Committee has enacted $15 billion worth of full-year CHIMPs for fiscal year 2019. The fiscal year 2019 CHIMPs were contained in the Labor, Health and Human Services, Education and Related Agencies division of P.L. 115-245 and the Commerce, Justice, Science, and Related Agencies division of P.L. 116- 6. This information is used for determining the point of order under section 4102, overall limit, of H. Con. Res. 71, 115th Congress.

In addition to the tables provided by Budget Committee Republican staff, I am submitting CBO tables, which I will use to enforce budget totals approved by Congress.

For fiscal year 2019, CBO estimates that current-law levels are $2.8 billion above and $3.3 billion below enforceable levels for budget authority and outlays, respectively. Revenues are $426 million below the level assumed in the budget resolution. Further, Social Security revenues are at the levels assumed for fiscal year 2019, while Social Security outlays are $4 million above assumed levels for the budget year.

CBO's report also provides information needed to enforce the Senate pay-as-you-go, PAYGO, rule. The PAYGO scorecard shows deficit increases in fiscal year 2019 of $1,930 million--$427 million revenue loss, $1,503 million outlay increase--over the fiscal year 2018-2023 period of $3,337 million--$894 million revenue loss, $2,443 million outlay increase--and over the fiscal year 2018-2028 period of $425 million-- $634 million revenue loss, $209 million outlay decrease. During this work period, one bill, the Consolidated Appropriations Act, 2019, included a statutory exemption for the budgetary effects of its Division H from the Senate's PAYGO scorecard. The Senate's PAYGO rule is enforced by section 4106 of H. Con. Res. 71, 115th Congress.

All years in the accompanying tables are fiscal years.

I ask unanimous consent that the accompanying tables be printed in the Record.

Sen. Michael B. EnziR-WY · Apr 10, 2019

Mr. President, I rise to submit to the Senate the budget scorekeeping report for April 2019. The report compares current-law levels of spending and revenues with the amounts the Senate agreed to in the Bipartisan Budget Act of 2018, BBA18. This information is necessary for the Senate Budget Committee to determine whether budgetary points of order lie against pending legislation. The Republican staff of the Budget Committee and the Congressional Budget Office, CBO, prepared this report pursuant to section 308(b) of the Congressional Budget Act, CBA.

This is my third scorekeeping report this year. My last filing can be found in the Congressional Record for February 27, 2019. The information included in this report is current through April 8, 2019.

Since my last filing, three bills with significant budgetary effects cleared Congress, the Pesticide Registration Improvement Extension Act of 2018, P.L. 116-8; the John D. Dingell, Jr. Conservation, Management, and Recreation Act, P.L. 116-9; and the Medicaid Services Investment and Accountability Act of 2019, H.R. 1839.

Budget Committee Republican staff prepared Tables 1-3.

Table 1 gives the amount by which each Senate authorizing committee exceeds or is below its allocation for budget authority and outlays under the fiscal year 2019 enforceable levels filing required by BBA18. This information is used for enforcing committee allocations pursuant to section 302 of the CBA. Over the current 10-year enforceable window, authorizing committees have increased outlays by a combined $3.4 billion. For this reporting period, as in my last report, 8 of the 16 authorizing committees are not in compliance with their allocations. One of these committees, Finance, further exacerbated its violations this work period with the passage of the Medicaid Services Investment and Accountability Act. CBO estimates that this measure will increase mandatory spending for all enforceable periods, including an increase in outlays of $27 million over the Fiscal Year 2019-2028 period. The Agriculture Committee reduced the size of its violations with the passage of the Pesticide Registration Improvement Extension Act, which CBO scores as reducing outlays by $5 million in Fiscal Year 2019 and by $23 million over the Fiscal Year 2019-2023 period. The Energy and Natural Resources Committee, which was not in breach of its allocation for the last reporting cycle, continued to reduce spending with the passage of the John D. Dingell, Jr. Conservation, Management, and Recreation Act. CBO estimates that this measure will reduce spending by $10 million over both the 5- and 10-year enforceable windows. This savings is credited to its allocation, as shown in the table.

Tables 2 provides the amount by which the Senate Committee on Appropriations is below or exceeds the statutory spending limits. This information is used to determine points of order related to the spending caps found in sections 312 and 314 of the CBA. Appropriations for Fiscal Year 2019, displayed in this table, show that the Appropriations Committee is compliant with spending limits for Fiscal Year 2019. Those limits for regular discretionary spending are $647 billion for accounts in the defense category and $597 billion for accounts in the nondefense category of spending.

The Fiscal Year 2018 budget resolution contained points of order limiting the use of changes in mandatory programs in appropriations bills, CHIMPs. Table 3, which tracks the CHIMP limit of $15 billion for Fiscal Year 2019, shows the Appropriations Committee has enacted $15 billion worth of full-year CHIMPs for Fiscal Year 2019.

In addition to the tables provided by Budget Committee Republican staff, I am submitting CBO tables, which I will use to enforce budget totals approved by Congress.

For Fiscal Year 2019, CBO estimates that current-law levels are $2.9 billion above and $3.3 billion below enforceable levels for budget authority and outlays, respectively. Revenues are $426 million below the level assumed in the budget resolution. Further, Social Security revenues are at the levels assumed for Fiscal Year 2019, while Social Security outlays are $4 million above assumed levels for the budget year.

All years in the accompanying tables are fiscal years.

I ask unanimous consent that the accompanying tables be printed in the Record.

Sen. Michael B. EnziR-WY · Jan 10, 2019

Mr. President, I wish to submit to the Senate the budget scorekeeping report for January 2019. The report compares current-law levels of spending and revenues with the amounts the Senate agreed to in the Bipartisan Budget Act of 2018, BBA18. This information is necessary for the Senate Budget Committee to determine whether budgetary points of order lie against pending legislation. The Republican staff of the Budget Committee and the Congressional Budget Office, CBO prepared this report pursuant to section 308(b) of the Congressional Budget Act, CBA.

This is my first scorekeeping report this year. My last filing can be found in the Congressional Record for November 15, 2018. That report included final budgetary levels for fiscal year 2018. The information included in this report is current through January 7, 2019.

Several bills have cleared Congress since my last filing. The three with the largest direct spending and revenue effects were the Frank LoBiondo Coast Guard Authorization Act of 2018, P.L. 115-282; the Agriculture Improvement Act of 2018, P.L. 115-334; and the First Step Act, P.L. 115-391.

Budget Committee Republican staff prepared Tables 1-3.

Tables 2 provides the amount by which the Senate Committee on Appropriations is below or exceeds the statutory spending limits. This information is used to determine points of order related to the spending caps found in sections 312 and 314 of the CBA. Appropriations for fiscal year 2019, displayed in this table, show that the Appropriations Committee is currently compliant with spending limits for fiscal year

2019. As of this filing, 7 of the 12 annual appropriations bills have not been enacted with full-year spending.

The fiscal year 2018 budget resolution contained points of order limiting the use of changes in mandatory programs in appropriations bills, CHIMPS. Table 3, which tracks the CHIMP limit of $15 billion for fiscal year 2019, shows the Appropriations Committee has enacted $7.7 billion worth of full-year CHIMPs for fiscal year 2019. The fiscal year 2019 CHIMPs were contained in the Labor, Health and Human Services, Education and Related Agencies division of P.L. 115-245. This information is used for determining the point of order under section 4102, overall limit, of H. Con. Res. 71, 115th Congress.

In addition to the tables provided by Budget Committee Republican staff, I am submitting CBO tables, which I will use to enforce budget totals approved by Congress.

For fiscal year 2019, CBO annualizes the effects of the last continuing resolution, P.L. 115245, which provided funding through December 21, 2018. For the enforcement of budgetary aggregates, the Budget Committee historically excludes temporary funding. As such, the current-law levels are $305.5 billion and $196.7 billion below enforceable levels for budget authority and outlays, respectively. Revenues are $302 million below the level assumed in the budget resolution. Further, Social Security revenues are at the levels assumed for fiscal year 2019, while Social Security outlays are $4 million above assumed levels for the budget year.

CBO's report also provides information needed to enforce the Senate pay-as-you-go, PAYGO, rule. The PAYGO scorecard shows deficit increases in FY 2019 of $1,797 million--$302 million revenue loss, $1,495 million outlay increase--over the fiscal year 2018-2023 period of $3,045 million--$665 million revenue loss, $2,380 million outlay increase--and over the fiscal year 2018-2028 period of $416 million--$625 million revenue loss, $209 million outlay decrease. The Senate's PAYGO rule is enforced by section 4106 of H. Con. Res. 71, 115th Congress.

This submission also includes a table tracking the Senate's budget enforcement activity on the floor since the May 7, 2018, enforcement filing. Since my last report, no new budgetary points of order were raised.

All years in the accompanying tables are fiscal years.

I ask unanimous consent that the accompanying tables be printed in the Record.

Sen. Michael B. EnziR-WY · May 22, 2019

Mr. President, I wish to submit to the Senate the budget scorekeeping report for May 2019. The report compares current-law levels of spending and revenues with the amounts the Senate agreed to in the Bipartisan Budget Act of 2018, BBA18. This information is necessary for the Senate Budget Committee to determine whether budgetary points of order lie against pending legislation.

The Republican staff of the Budget Committee and the Congressional Budget Office, CBO, prepared this report pursuant to section 308(b) of the Congressional Budget Act, CBA.

This is my fourth scorekeeping report this year. My last filing can be found in the Congressional Record for April 10, 2019. The information included in this report is current through May 20, 2019.

Since my last filing, Congress has cleared only one measure, S. 1436, a bill to make technical corrections to the computation of average pay under Public Law 110-279, with significant budgetary effects. This bill made changes to the calculation of retirement benefits for certain employees who staff the dining services for the U.S. Senate. Those services were privatized in 2008.

Budget Committee Republican staff prepared tables A-C.

Table A gives the amount by which each Senate authorizing committee exceeds or is below its allocation for budget authority and outlays under the fiscal year 2019 enforceable levels filing required by BBA18. This information is used for enforcing committee allocations pursuant to section 302 of the CBA. Over the current 10-year enforceable window, authorizing committees have increased outlays by a combined $3.4 billion. For this reporting period, 9 of the 16 authorizing committees are not in compliance with their allocations. As a result of passage of S. 1436, the Senate Committee on Rules and Administration is now in violation of its allocation for both budget authority and outlays over the fiscal year 2019-2028 period.

Table B provides the amount by which the Senate Committee on Appropriations is below or exceeds the statutory spending limits. This information is used to determine points of order related to the spending caps found in sections 312 and 314 of the CBA. Appropriations for fiscal year 2019, displayed in this table, show that the Appropriations Committee is compliant with spending limits for the current fiscal year. Those limits for regular discretionary spending are $647 billion for accounts in the defense category and $597 billion for accounts in the nondefense category of spending.

The fiscal year 2018 budget resolution contained points of order limiting the use of changes in mandatory programs in appropriations bills, CHIMPs. Table C, which tracks the CHIMP limit of $15 billion for fiscal year 2019, shows the Appropriations Committee has enacted $15 billion worth of full-year CHIMPs for this fiscal year.

In addition to the tables provided by Budget Committee Republican staff, I am submitting CBO tables, which I will use to enforce budget totals approved by Congress.

For fiscal year 2019, CBO estimates that current-law levels are $2.9 billion above and $3.3 billion below enforceable levels for budget authority and outlays, respectively. Revenues are $426 million below the level assumed in the budget resolution. Further, Social Security revenues are at the levels assumed for fiscal year 2019, while Social Security outlays are $4 million above assumed levels for the budget year.

CBO's report also provides information needed to enforce the Senate pay-as-you-go, PAYGO, rule. The PAYGO scorecard shows deficit increases in fiscal year 2019 of $1,957 million, $427 million revenue loss, $1,530 million outlay increase; over the fiscal year 2018-2023 period of $3,373 million, $894 million revenue loss, $2,479 million outlay increase; and over the fiscal year 2018-2028 period of $443 million, $634 million revenue loss, $191 million outlay decrease.

All years in the accompanying tables are fiscal years.

I ask unanimous consent that the accompanying tables be printed in the Record.

Show 3 more

Rep. Maxine WatersD-CA-43 · May 14, 2019

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 1037) to increase transparency with respect to financial services benefitting state sponsors of terrorism, human rights abusers, and…

Mr. Speaker, I ask unanimous consent that all Member may have 5 legislative days within which to revise and extend their remarks on this legislation and to insert extraneous material thereon.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I rise in support of H.R. 1037, the Banking Transparency for Sanctioned Persons Act.

This legislation requires the Secretary of the Treasury to report to Congress every 6 months a list of the licenses that it issues to financial institutions to provide services to countries and persons subject to certain U.S. sanctions. It also provides Congress with information about foreign financial firms that similarly provide

support to those same countries and persons.

I support this bill because I believe its disclosure requirements will serve as a useful oversight tool for Congress. Today, when the Office of Foreign Assets Control, or OFAC, issues a license to a company that allows them to engage in an activity that would otherwise be prohibited by U.S. sanctions, OFAC does not disclose those licenses.

I support the bill's other reporting requirement related to foreign financial firms. These lists of foreign financial institutions can provide a useful basis for Congress to review the administration's overall sanction strategy and to press the administration to impose restrictions on these institutions to change their behavior.

When a nearly identical version of this bill was considered by the Financial Services Committee last Congress, I supported the bill's disclosure requirements, but I thought it would be counterproductive to have the information revealed publicly.

For example, OFAC licenses often contain commercially sensitive information. If companies could no longer expect licenses to remain private, they would be less likely to apply for them, which would be detrimental to humanitarian efforts.

I didn't think the public identification of these foreign financial firms would serve a useful policy purpose and could otherwise move legal activity into a shade of gray. For these reasons, a Democratic amendment was adopted in committee by voice vote to allow for Congress to review the lists confidentially.

I believe H.R. 1037, which includes this critical change from last Congress, would increase congressional oversight of U.S. sanctions activity appropriately, and I urge my colleagues to support it.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I yield myself the balance of my time.

Mr. Speaker, H.R. 1037, the Banking Transparency for Sanctioned Persons Act of 2019, will help ensure that Members of Congress have the information they need to provide more effective oversight of the decisions made by Treasury and OFAC and the impact that those decisions have on sanctioned persons.

Mr. Speaker, I thank Mr. Riggleman for bringing this bill forward, and I urge my colleagues to join me in supporting this important piece of legislation.

Mr. Speaker, I yield back the balance of my time.

Rep. Steve StiversR-OH-15 · May 14, 2019

Mr. Speaker, I yield myself such time as I may consume. I want to express my strong support for H.R. 1037, the Banking Transparency for Sanctioned Persons Act. The bill includes important provisions…

Mr. Speaker, I yield myself such time as I may consume.

I want to express my strong support for H.R. 1037, the Banking Transparency for Sanctioned Persons Act. The bill includes important provisions to strengthen our national security, and it passed unanimously last year in the full House.

I am pleased to see this legislation come to the floor under a new sponsor, the gentleman from Virginia (Mr. Riggleman). Although he is in his first term, Congressman Riggleman has already made significant contributions to the committee's work. His leadership on this bill is a case in point.

The gentleman's legislation would require the Treasury Department to provide Congress with a copy of licenses that authorize financial services for state sponsors of terrorism. These licenses are essentially waivers, and while sanctions laws often require congressional notification when formal waivers are issued, licenses can fall through the cracks.

To be clear, some licenses may be desirable, such as those allowing humanitarian relief or allowing for tailoring of sanctions in order to better advance our policy goals. In other cases, however, Congress may have legitimate concerns that a sanctioned entity is being licensed to carry out transactions with U.S. persons, including our country's financial institutions.

This bill simply ensures that Congress knows whether a license has been issued, which will allow us to have better oversight of the sanctions program.

In addition, Mr. Speaker, this bill requires Treasury to send Congress semiannual reports that show which foreign financial institutions are providing support for sanctioned terrorists, corrupt officials, and human rights abusers. Although these bad actors are cut off from American banks, we should know whether they are evading our measures through the use of foreign entities. If Congress is made aware of these relationships, we can work to close those loopholes.

Again, the unanimous support these policies have garnered previously underscores their commonsense nature. Congressman Riggleman has spent much of his career before Congress devoted to protecting our national security, and his work on this bill, H.R. 1037, deserves our support.

I urge my colleagues to support this measure, and I reserve the balance of my time.

Mr. Speaker, I yield such time as he may consume to the gentleman from Virginia (Mr. Riggleman), the sponsor of the bill. He has done great work here, and I will give him as much time as he may consume.

Mr. Speaker, I urge adoption of this bipartisan bill that passed unanimously in committee and in the House last year.

Mr. Speaker, I yield back the balance of my time.

Rep. Denver RigglemanR-VA-5 · May 14, 2019

Mr. Speaker, I rise today in support of H.R. 1037, the Banking Transparency for Sanctioned Persons Act of 2019. I thank the chairwoman of the committee, Ms. Waters, as well as Ranking Member McHenry…

Mr. Speaker, I rise today in support of H.R. 1037, the Banking Transparency for Sanctioned Persons Act of 2019.

I thank the chairwoman of the committee, Ms. Waters, as well as Ranking Member McHenry for their support and willingness to bring this legislation to the House floor for a vote. I also thank my colleague Josh Gottheimer for cosponsoring this legislation.

This bill requires the Department of the Treasury to report on financial services provided to a state sponsor of terrorism or sanctioned person. This is a commonsense reporting requirement that will further assist Congress in its oversight functions, including financial sanctions against state sponsors of terrorism, human rights abusers, and other bad actors targeted with certain U.S. sanctions.

This legislation is simple yet essential. It requires the Secretary of the Treasury to submit to Congress every 180 days a report with two sets of information: first, a list of the licenses it issues to financial institutions to provide services to countries and persons subject to certain U.S. sanctions, and this would include state sponsors of terrorism such as Iran, North Korea, or Syria; second, Treasury would have to provide a list of any foreign banks that conduct significant transactions for persons that have been sanctioned for human rights abuses or corruption. This report will support Congress by ensuring that sanctions are being legally and appropriately applied across the board.

The information in these reports will inform Congress about how sanctioned states and individuals engage in financial transactions. Additionally, the increased transparency will help us understand the impacts of sanctions on targeted individuals.

With a clear idea of how certain foreign countries are undermining U.S. efforts to combat corruption and human rights atrocities, we can adjust our sanctions policies so they have the intended effects.

Finally, this bill will aid Congress and the executive branch to tailor secondary sanctions on foreign financial institutions, as well as better determine how those sanctions should be effectively designed and what the unintended consequences might be, if any should exist.

This will be a useful oversight tool and a powerful disclosure requirement that can help Congress understand existing sanctions and design a more effective program for the future.

Mr. Speaker, this bill unanimously passed the House in the 115th Congress, and I invite all of my colleagues to join me today and pass

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Referred in SenateIssued May 15, 2019

IIB

116th CONGRESS

1st Session

H. R. 1037

IN THE SENATE OF THE UNITED STATES

May 15, 2019

Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs

AN ACT

To increase transparency with respect to financial services benefitting state sponsors of terrorism, human rights abusers, and corrupt officials, and for other purposes.

Short title

This Act may be cited as the Banking Transparency for Sanctioned Persons Act of 2019.

Report on financial services benefitting state sponsors of terrorism, human rights abusers, and corrupt officials

(a)

In general

Not later than 180 days after the date of the enactment of this Act, and every 180 days thereafter, the Secretary of the Treasury shall issue a report to the Committees on Financial Services and Foreign Affairs of the House of Representatives and the Committees on Banking, Housing, and Urban Affairs and Foreign Relations of the Senate that includes—

(1)

a copy of any license issued by the Secretary in the preceding 180 days that authorizes a financial institution to provide financial services benefitting a state sponsor of terrorism; and

(2)

a list of any foreign financial institutions that, in the preceding 180 days, knowingly conducted a significant transaction or transactions, directly or indirectly, for a sanctioned person included on the Department of the Treasury’s Specially Designated Nationals And Blocked Persons List who—

(A)

is owned or controlled by, or acts on behalf of, the government of a state sponsor of terrorism; or

(B)

is designated pursuant to any of the following:

(i)

Section 404 of the Russia and Moldova Jackson-Vanik Repeal and Sergei Magnitsky Rule of Law Accountability Act of 2012 (Public Law 112208).

(ii)

Subtitle F of title XII of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328, the Global Magnitsky Human Rights Accountability Act).

(iii)

Executive Order No. 13818.

(b)

Form of report

The report required under subsection (a) shall be submitted in unclassified form but may contain a classified annex.

Waiver

The Secretary of the Treasury may waive the requirements of section 2 with respect to a foreign financial institution described in paragraph (2) of such section—

(1)

upon receiving credible assurances that the foreign financial institution has ceased, or will imminently cease, to knowingly conduct any significant transaction or transactions, directly or indirectly, for a person described in subparagraph (A) or (B) of such paragraph (2); or

(2)

upon certifying to the Committees on Financial Services and Foreign Affairs of the House of Representatives and the Committees on Banking, Housing, and Urban Affairs and Foreign Relations of the Senate that the waiver is important to the national interest of the United States, with an explanation of the reasons therefor.

Definitions

For purposes of this Act:

(1)

Financial institution

The term financial institution means a United States financial institution or a foreign financial institution.

(2)

Foreign financial institution

The term foreign financial institution has the meaning given that term under section 561.308 of title 31, Code of Federal Regulations.

(3)

Knowingly

The term knowingly with respect to conduct, a circumstance, or a result, means that a person has actual knowledge, or should have known, of the conduct, the circumstance, or the result.

(4)

United States financial institution

The term United States financial institution has the meaning given the term U.S. financial institution under section 561.309 of title 31, Code of Federal Regulations.

Sunset

The reporting requirement under this Act shall terminate on the date that is the end of the 7-year period beginning on the date of the enactment of this Act.

Passed the House of Representatives May 14, 2019.

Cheryl L. Johnson,

Clerk